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After Hours Action: Texas Instruments, Amgen...

After the bell the traders pored over results from Texas Instruments and Amgen. How should you trade these names in the wake of earnings?

AFTER HOURS ACTION: TEXAS INSTRUMENTS

Texas Instruments posted higher-than-expected results Monday, but shares were flat after the firm gave a tepid outlook for the current quarter.

Looking at the numbers, the chipmaker reported fiscal third-quarter earnings of 71 cents a share. TI earned 42 cents a share during the same period a year earlier.

Sales for the most recent quarter rose to $3.74 billion, up from $2.88 billion last year.

The company was seen earning 69 cents a share on revenue of $3.69 billion, according to a consensus estimate from Thomson Reuters.

The company said it expects fiscal fourth-quarter revenue between $3.36 billion and $3.64 billion and earnings of 59 cents to 67 cents a share.

Wall Street analysts expected fourth quarter revenue of $3.51 billion and earnings of 63 cents a share.

What's the trade?

It’s the guidance that investors didn’t like, explains Tim Seymour. TI is saying the consumer isn’t strong and that’s spooked investors a little because other companies didn’t really say that. However, if you’re a long-term investor I think the stock is cheap.

I’m also a buyer, says Stephen Weiss, author of The Billion Dollar Mistake.

There was nothing in the report that I thought was terribly damaging, adds Joe Terranova. I’m a buyer on dips.

> Click here for more coverage of Texas Instruments earnings

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AFTER HOURS ACTION: AMGEN

Shares of Amgen slipped modestly in extended trade after the company reported that its third-quarter profit fell on declining sales of some of its biggest drugs, but the results exceeded Wall Street's tempered expectations.

Looking at the numbers, the world's largest biotechnology company posted a net profit of $1.24 billion, or $1.28 per share, down from a profit of $1.39 billion, or $1.36 per share, a year ago.

Excluding items, Amgen earned $1.36 per share. Analysts on average expected $1.27, according to Thomson Reuters I/B/E/S.

Revenue was flat at $3.82 billion and shy of Wall Street estimates of $3.77 billion.

The company maintained its full-year forecast for revenue slightly below $15.1 billion, which had been the bottom of an earlier forecast range, and still sees adjusted earnings toward the low end of $5.05 to $5.25 per share range.

What's the trade?

My price target is $69, says Baird analyst Chris Raymond, and I think the stock can get there if it gets positive results from its new bone cancer drug. However my top picks in the space are BioMarin and Dendreon .


The biotech space is risky, reminds Karen Finerman. I prefer playing with the XBI and the IBB to diversify that risk, she says. However, I playing the consolidation story.

For more on this trade check out our entire conversation with Baird analyst Chris Raymond. Watch the video here!


> Click here for more coverage of Amgen earnings



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Trader disclosure: On Oct. 25, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (F), (NOK); Finerman owns (AAPL); Finerman & Finerman’s Firm owns (BAC); Finerman owns (GOOG); Finerman & Finerman’s Firm owns (JPM); Finerman’s Firm owns (HPQ); Finerman’s Firm owns (MSFT); Finerman’s Firm owns (SKS); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (IBM), (ISRG), (MCD), (MDT), (MMM), (NKE), (ORCL), (OXY), (PEP), (PFE), (PCP), (UPL), (VRTS), (XBI); Weiss owns (QCOM), (AKAM), (VZ), (TXN), (COP), (NIHD)

For Gary Kaminsky
***No Disclosures***


For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)

For Peter Schiff
***No Disclosures***

For Chris Raymond
Robert W. Baird & Co. makes a market in (AMGN)
Robert W. Baird & Co. intend to seek investment banking compensation from (AMGN) within the next 3 months

For David Sackler
Moab Capital Partners Owns (RGS), (RGR)


For Bill O'Donnell
***No Disclosures***

For Mike Khouw
Cantor Fitzgerald makes a market in (EXPE)

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